FX.co ★ EUR/GBP candlestick analysis for July 12, 2011

In a 4-hour graph the EUR/GBP currency pair is still moving downside after successful test of the support level 0.8860 anf the Fibonacci correction level 61.8. The viewpoint at the pair remains bearish.
Earlier in a 4-hour graph the EUR/GBP formed a Dark Cloud Cover candlestick combination indicating downside movement confirmed further.
This candlestick combination was demonstrating strong upside movement after a fail to break 0.8720. However, it reversed near 0.9083. It means that the bears activated near 0.9100 and did not allow the bulls to fixate.
Fixation below the Fibonacci correction level 23.6 denotes that this point of view is correct. This caused a decline to the support level 0.8860 where the Fibonacci correction level 61.8 is located as well. Its break will probably cause downside movement to 0.8720.
It is worth mentioning that stop loss should be placed slightly above the resistance level 0.9000 as its break will target the pair to 0.9083.